Kodal surges on news of investment, potential off-take agreement, placing with Suay Chin

Shares in Kodal Minerals surged on news of a £4.3m strategic investment, potential off-take agreement and £500,000 placing, all with Suay Chin International.

Suay Chin is planning to increase its shareholding in the lithium miner to 20% at a price of £0.0038 per share for a total of £4.3m, a 65% premium on Thursday’s closing share price

It initially bought £500,000 worth of shares in Kodal at a placing price of 0.003p each from the issue of 166.66m shares, a 30% premium.

The companies are in talks about an off-take agreement regarding 20% of the spodumene concentrate to be produced from Kodal’s Bougouni lithium project in Mali.

Kodal chief executive Bernard Aylward said: "Our exploration activity has confirmed the lithium mineralised pegmatite veins at surface and the demonstration of high-grade lithium mineralisation from our drilling has generated a lot of interest in fast-tracking potential development.

“Suay Chin is very positive about assisting us through the metallurgical testwork and development phase of the project, and with the additional funding we will continue to advance the project rapidly.”

At 12:43 GMT, shares in Kodal were up 43.66% to 0.334p each.